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Wang Company Provides the Following Data for the Current Year

question 189

Essay

Wang Company provides the following data for the current year:
Estimated Factory Overhead $7,800
Factory Overhead Incurred $11,400
Factory Overhead Applied ?
Estimated Direct Labor Cost $12,000
Direct Labor Cost Incurred $11,800
Required:
a. Calculate the predetermined overhead allocation rate based on direct labor.
b. Determine the amount of overhead applied to production.
c. Prepare the journal entry to apply factory overhead to Work in Process.


Definitions:

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Income Effect

How a shift in income, whether for an individual or an economy, influences the amount of a good or service that is requested.

Leisure

Free time when one is not working or occupied, offering the opportunity for rest, recreation, or other personal activities.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, reflecting how individuals respond to changes in income or working conditions.

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